Search found 8698 matches

by Kevin M
Sat Aug 14, 2010 4:28 am
Forum: Personal Finance (Not Investing)
Topic: Long term prospects for US investments?
Replies: 41
Views: 6505

You lose nothing if you hold a bond to maturity. Well, you may not lose your original principal, but if interest rates have risen, then the bond value would drop if you used a true mark-to-market price on the bond. What you would lose is the opportunity cost of not being able to invest in a higher ...
by Kevin M
Tue Jul 06, 2010 8:03 pm
Forum: Investing - Theory, News & General
Topic: 5-year asset-class returns. Does it matter?
Replies: 42
Views: 3896

By "tend to mean revert" I meant that periods of asset class outperformance tend to be followed by periods of underperformance and vice versa. All research I've been exposed to through writings of Bogle, Bernstein, et al seems to support that this is the case over longer periods of time, ...
by Kevin M
Tue Jul 06, 2010 4:10 pm
Forum: Investing - Theory, News & General
Topic: 5-year asset-class returns. Does it matter?
Replies: 42
Views: 3896

By "tend to mean revert" I meant that periods of asset class outperformance tend to be followed by periods of underperformance and vice versa. All research I've been exposed to through writings of Bogle, Bernstein, et al seems to support that this is the case over longer periods of time, a...
by Kevin M
Tue Jul 06, 2010 1:55 pm
Forum: Investing - Theory, News & General
Topic: 5-year asset-class returns. Does it matter?
Replies: 42
Views: 3896

Asset class returns are period dependent, and correlations are dynamic. We can always find periods that make a point we want to make (high correlation, low correlation, outperformance of an asset class, etc.). Broad equity indices tend to mean revert over long periods, but limited periods of outperf...
by Kevin M
Sun Jun 27, 2010 3:56 pm
Forum: Investing - Theory, News & General
Topic: New to investing and have a couple questions.
Replies: 37
Views: 3429

I do need to reasearch and will read up on some of the suggested reading to start managing my 401k better and maybe start an ira with some of it. After I'am done reasearching stocks of coarse. Given your interest in stocks, a book that might be appropriate for you is "The Only Three Questions ...
by Kevin M
Sun Jun 27, 2010 3:44 pm
Forum: Investing - Theory, News & General
Topic: New to investing and have a couple questions.
Replies: 37
Views: 3429

Looking at that chart it looks to me like the Fidelity Spartan 500 Index FUSEX has been a very poor performer. Am i missing something? To supplement SDInvestor's reply, it's not that the fund was a poor performer (relative to other similar funds), it's that the S&P 500 index that it tracks happ...
by Kevin M
Sun Jun 27, 2010 3:23 am
Forum: Investing - Theory, News & General
Topic: New to investing and have a couple questions.
Replies: 37
Views: 3429

like i said I am 30 and want to retire at 50 so i am looking for advice on how to get there from here!! Have you spent some time running the numbers to see if your goal is realistic? There are many resources to help with that, The Boglehead's Guide to Retirement Planning being one of them. No matte...
by Kevin M
Sun Jun 27, 2010 2:43 am
Forum: Investing - Help with Personal Investments
Topic: Personal Finance / Portfolio Help (One Year Later)
Replies: 19
Views: 3173

If I don't use extra cash to payoff my loans, how would you suggest investing the remaining money (once tax-sheltered retirement funds are exhausted)? For shorter term needs (0-5 years, or maybe even longer), the approach that makes the most sense to me is to match maturity or duration to the date ...
by Kevin M
Sun Jun 27, 2010 1:47 am
Forum: Investing - Theory, News & General
Topic: New to investing and have a couple questions.
Replies: 37
Views: 3429

Re: New to investing and have a couple questions

Last year, I spent a great deal of time studying the stock market, including individual stocks. I was lucky enough to enter the market in March, 2009. I followed up with investments in April and May, 2009. I made a significant amount of money during this time...returns of 36% to 83%...not chump cha...
by Kevin M
Sat Jun 26, 2010 10:41 pm
Forum: Investing - Help with Personal Investments
Topic: How to buy ETFs?
Replies: 12
Views: 2267

tj, are you going to be placing the order during the day when the market is open? That's the only way to place a limit order at the current ask, as some are recommending. I know that some people actually work during the day , and can't take time to place orders when the market is open. In that case,...
by Kevin M
Sat Jun 26, 2010 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Finance / Portfolio Help (One Year Later)
Replies: 19
Views: 3173

Thanks for the information! Does anyone happen to know what the rough allocation would be between the S&P 500 fund and the Extended Market fund in order to achieve equivalence with the Total Stock Market fund? According to S&P web site, S&P500 covers 75% of US equities, so 75% S&P50...
by Kevin M
Sat Jun 26, 2010 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Finance / Portfolio Help (One Year Later)
Replies: 19
Views: 3173

One other question:My Roth IRA currently includes the Vanguard Total Stock Market Index (VTSMX) which is based on the MSCI US Broad Market Index. My 401k includes the Vanguard Institutional Index Fund, which is based on the S&P 500. Assuming that I leverage the S&P fund in my 401k, should I...
by Kevin M
Sat Jun 26, 2010 1:23 pm
Forum: Investing - Theory, News & General
Topic: New to investing and have a couple questions.
Replies: 37
Views: 3429

I understand your enthusiasm, but would you be willing to read just one fairly short book to get more insight into what the other posters are saying about stock picking being a loser's game? How about "Winning the Loser's Game" by Charles D. Ellis? Any of the other books on the recommended...
by Kevin M
Sat Jun 26, 2010 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: How to buy ETFs?
Replies: 12
Views: 2267

But also think back to the first mutual fund shares you bought. That must also have been new to you. How did you handle that? How did you learn how to do that? I picked the fund and said I wanted to buy $____ worth of shares. 2 clicks and 5 seconds and I was done. This is why I suggested using a ma...
by Kevin M
Sat Jun 26, 2010 3:05 am
Forum: Investing - Help with Personal Investments
Topic: How to buy ETFs?
Replies: 12
Views: 2267

This is an example of why ETFs are more complicated to buy than mutual funds. If you're sure you want to buy the ETF, without complications, just put in a market order, and accept the defaults for other choices.

Kevin
by Kevin M
Fri Jun 25, 2010 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: managing others' accounts
Replies: 48
Views: 5672

The following 2 are potentially decent: EQ/PIMCO Real Return EQ/Equity 500 Index (seems to have an ER of 0.39% - high for an index fund but we're scraping the bottom of the barrel here) S&P 500 with 0.39% (or even 0.51% per PM) ER isn't horrible relative to choices in some 401/403 plans. My dau...
by Kevin M
Fri Jun 25, 2010 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: managing others' accounts
Replies: 48
Views: 5672

I agree that if starting from scratch, Vanguard would be the better choice now. Is it worth the $75 (or whatever Fido charges) to transfer assets? On a principal of $16k-20k, they may not want to do that. I think they're fine staying with Fidelity if they're comfortable with that. What other comple...
by Kevin M
Fri Jun 25, 2010 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement income options
Replies: 7
Views: 2288

I use a mix of cash, CDs, and bond funds, with 30% in stocks and stock funds. Investment income more than covers expenses, so I don't really have to worry much about portfolio fluctuations. Nevertheless, I like to roughly match duration to potential expenses assuming zero income. A retired friend us...
by Kevin M
Fri Jun 25, 2010 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Any special trick to buying CDs via Vanguard?
Replies: 10
Views: 2271

Rates are low for brokered CDs -- e.g., no better at Fidelity. You can get a little more than money market rates on a 3 month CD (0.15% - 0.4%). Some days you'll find better rates than others. I've found buying new issue CDs through Vanguard straightforward. I personally wouldn't go out far in matur...
by Kevin M
Tue Jun 22, 2010 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: managing others' accounts
Replies: 48
Views: 5672

As someone who, out of historical inertia, has a Fidelity brokerage account and IRA (I was introduced to Bogleheadism very recently), I'd like to point out that Fidelity now has commission-free trading in various low-ER iShares ETFs that should enable satisfactory small cap value investing and the ...
by Kevin M
Tue Jun 22, 2010 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: managing others' accounts
Replies: 48
Views: 5672

And at that point if you can offer some specific portfolio advice for us, given her rather lousy investment choices, I would appreciate it! I don't have specific advice, but perhaps the following will be helpful. I have been through similar exercises with 2 daughters, one with only high-expense act...
by Kevin M
Tue Jun 22, 2010 8:12 pm
Forum: Investing - Theory, News & General
Topic: How is Value Averaging different from DCA & Rebalancing?
Replies: 7
Views: 2077

Philosophically though I still don't see the difference between VA and DCA with simultaneous rebalancing. What do you mean by "philosophically"? They're different approaches that have some similarities and some differences. I've read through the Value Averaging book and available journal ...
by Kevin M
Mon Jun 21, 2010 4:11 am
Forum: Investing - Help with Personal Investments
Topic: IRA for minor
Replies: 25
Views: 2903

I have heard Schwab mentioned too, with regard to low amount IRAs. I think Schwab is good for young investors with less than $3,000 (VG min for all funds except STAR). They have total stock and total international index funds with $100 minimums, and no-commission ETFs if you want some additional as...
by Kevin M
Mon Jun 21, 2010 2:42 am
Forum: Investing - Theory, News & General
Topic: How is Value Averaging different from DCA & Rebalancing?
Replies: 7
Views: 2077

Re: How is Value Averaging different from DCA & Rebalanc

... I save into a MMF every month and then every quarter I will manually add the desired amounts to rebalance the bands to 70/30. So I do DCA and rebalancing simultaneously. So, I was wondering is there any philosophical difference between VA and DCA + simultaneous Rebalancing? I know that there's ...
by Kevin M
Mon Jun 21, 2010 2:10 am
Forum: Investing - Theory, News & General
Topic: Value Averaging
Replies: 15
Views: 3917

Re: Value Averaging

Eagle, What I can't understand is how to figure out the value path for each year. Since you're doing monthly investments, you would calculate a value path by month, not by year. In Michael Edleson's book and the excel spreadsheet I've downloaded from the website, you must have an end goal (ie how mu...
by Kevin M
Tue Jun 15, 2010 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Yield Comparison
Replies: 6
Views: 2397

First, want to retract my comment about grabiner's description of distribution yield as inaccurate; there's nothing inconsistent in what he described and the Vanguard definition of distribution yield. Regarding a fund holding bonds to maturity, I don't think that's the case. I don't see how they'd m...
by Kevin M
Mon Jun 14, 2010 11:25 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Yield Comparison
Replies: 6
Views: 2397

The SEC yield makes for a better comparison, as the distribution yield depends on the face value of the bonds as well as their current value. If a fund holds a bond with a $10,000 face value and a 5% yield, the bond will pay $500 in dividends each year. If the bond's price has fallen to $9,653 four...
by Kevin M
Mon Jun 14, 2010 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Yield Comparison
Replies: 6
Views: 2397

SEC yield is intended for use in comparing fund yields. It's the YTM based on the last 30 days, so it's not completely current. You can also see current YTM for the funds. Distribution yields can be very different than SEC Yield. I was just noticing that the distribution yields for several of my VG ...
by Kevin M
Sun Jun 13, 2010 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: How do I move from an actively managed account?
Replies: 6
Views: 779

It's easy to move stocks between most brokerages -- I've done it many times. Do the paperwork with the new brokerage to do a transfer in kind of stocks. The new brokerage takes care of everything -- you don't even have to talk to the old brokerage.
by Kevin M
Sun Jun 13, 2010 1:04 am
Forum: Investing - Help with Personal Investments
Topic: ETFs in Vanguard Roth IRA
Replies: 26
Views: 16187

Thanks! Your info is a big help, and I btw. I prob. won't consider a switch between my TR fund to ETF Keep in mind that if you keep your TR fund, you should factor it into your asset allocation. If you want the allocation you indicated, then you have to account for the portion of each asset class a...
by Kevin M
Sat Jun 12, 2010 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs in Vanguard Roth IRA
Replies: 26
Views: 16187

I don't know if VG will let you open a brokerage account with $0 in your MM account; you can just try to do the application online and see. If not, as I said, you could exchange $3,000 from your TR fund to Prime MM, open the account, then buy your ETFs. It took 1 day for my daughter's account to be ...
by Kevin M
Sat Jun 12, 2010 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs in Vanguard Roth IRA
Replies: 26
Views: 16187

mo0ink, In your Roth IRA at Vanguard, do you have anything in the Prime money market fund? If so, then you don't need to contribute any more to open a brokerage account. You simply open the account, and indicate in your application that your existing money market fund is to be used as your "swe...
by Kevin M
Sat Jun 12, 2010 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs in Vanguard Roth IRA
Replies: 26
Views: 16187

We opened a brokerage account in my daughter's Roth IRA at Vanguard so she could get into additional asset classes without the $3,000 minimum of the index funds. Since she already had a Roth IRA mutual fund account, it only took a few minutes online to open the brokerage account. She had an existing...
by Kevin M
Tue Aug 18, 2009 2:32 am
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 719
Views: 304801

I'm trying to interpret the vertical distance between the lines. If the vertical distance between the lines stays the same, that means that Portfolio "A" is maintaining it's performance advantage in terms of percentage growth over Portfolio "B". Is this right? I believe so. That...
by Kevin M
Mon Aug 17, 2009 12:03 am
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 719
Views: 304801

Below is another one that shows the CAGR for all of the 5 year periods from 1927-2009 - - this time for TSM and LB/SV only. ... Thanks Trev. I find these charts much more illuminating. Regarding the various comments, I try to focus more on the "science" than the opinions. I think most of ...
by Kevin M
Sat Aug 15, 2009 9:18 pm
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 719
Views: 304801

... Yes - I have read that bit from Bogle a few times - The Telltale Chart. As well as others that do their best to convince the investor that TSM or US Large Blend is all you really need. ... What I think it really reveals about Bogle - is that even very smart folks, some would call "Experts&...
by Kevin M
Mon Aug 10, 2009 3:39 pm
Forum: Investing - Theory, News & General
Topic: Covered calls
Replies: 34
Views: 5299

I don't know what your tax position is but isn't it 15% for capital gains? In retirement, when my labour income has dropped to zero (no chance to make up lost ground) I'd rather eliminate any stock specific risk. 15% doesn't seem a lot to pay for that. Tech is a volatile sector. With the exception ...
by Kevin M
Sun Aug 09, 2009 3:37 pm
Forum: Investing - Theory, News & General
Topic: Covered calls
Replies: 34
Views: 5299

For last couple of years, have been selling calls to hedge employee stock options on HPQ . I retired from HP in in 2007, and had 3 years until had to exercise all options. Ran across an article explaining that employee stock options, like all options, have time value, so selling options against them...
by Kevin M
Sun Aug 02, 2009 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: your favorite rewards credit cards
Replies: 21
Views: 3278

Schwab Visa. 2% back on everything, no min or max. Automatically deposited to Schwab Brokerage account each month. You can then invest it in one of the Schwab index funds with newly lowered expense ratios (e.g., Total Stock for 0.09%, minimum $100). Only takes a few minutes to apply for the credit c...
by Kevin M
Fri Jul 03, 2009 5:27 pm
Forum: Personal Consumer Issues
Topic: What Book Are YOU Currently Reading? PART II
Replies: 1043
Views: 289426

All About Asset Allocation , Rick Ferri; thought I had read all the good investment books (and many of the bad ones) in my library, but somehow missed this one. Thought I'd better take a look, having seen some of Rick's posts since joining Bogleheads a few days ago. Outstanding! The Bogleheads' Gui...
by Kevin M
Wed Jul 01, 2009 4:55 pm
Forum: Investing - Theory, News & General
Topic: Small Cap and Total Stock Market Charts
Replies: 34
Views: 5760

I still think there is something wrong with the VG chart showing hypothetical growth of 10K over 10 years. As others have said, it has to be the reinvested dividends and capital gains that has made the difference. Since I couldn't quickly find a way to demonstrate this with hypothetical numbers fro...
by Kevin M
Wed Jul 01, 2009 4:04 pm
Forum: Investing - Theory, News & General
Topic: Small Cap and Total Stock Market Charts
Replies: 34
Views: 5760

My understanding is that Bogle is very well worth listening too, just remember as great as he is, he has his own biases and is human like the rest of us. Agreed. My main point is that he has done some actual analysis of the long term data to come to his conclusion that the small cap advantage is du...
by Kevin M
Wed Jul 01, 2009 1:20 pm
Forum: Investing - Theory, News & General
Topic: Small Cap and Total Stock Market Charts
Replies: 34
Views: 5760

I do see how all the small cap funds have performed better than the TSM in the past ten years. Now, maybe fifteen years would show something different? Nevertheless, I see some evidence for a better performance of SCV, but this could be "period dependency" and not a long-term feature. You...
by Kevin M
Wed Jul 01, 2009 1:03 pm
Forum: Investing - Theory, News & General
Topic: Small Cap and Total Stock Market Charts
Replies: 34
Views: 5760

Certainly true that 10 years is way too little. As to SV performance coming from one or two periods, seems shaky. (links deleted from above quote, because I'm not allowed to post links yet) Thanks for the pointers to your work -- very interesting. I thought I should follow up by at least being more...
by Kevin M
Tue Jun 30, 2009 6:06 pm
Forum: Investing - Theory, News & General
Topic: Small Cap and Total Stock Market Charts
Replies: 34
Views: 5760

What I've learned from reading John Bogle, William Bernstein, Larry Swedroe, Ken Fisher and others (and I'm sure it's been discussed on this forum many times, but I'm a newbie here) is that you have to consider period dependency and recency. You can find quite long (or short) time periods where larg...
by Kevin M
Tue Jun 30, 2009 12:28 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Freedom 2045 versus Fidelity Four-in-One Index
Replies: 14
Views: 9909

If you're concerned about access to funds because of temporary disruptions, then I'd think you'd focus more on your emergency/short term reserves rather than your longer term investment funds. I assume we mostly agree that short term reserves should be in cash-like investments. If you're having trou...
by Kevin M
Mon Jun 29, 2009 3:31 pm
Forum: Investing - Theory, News & General
Topic: P/E of Total Stock Market Index Fund
Replies: 16
Views: 5449

P/E of Total Stock Market Index Fund

In Larry Swedroe's 6/15/09 interview with IndexUniverse, he states that the trailing P/E of the VG total stock market fund is about 12 now, but the Vanguard site lists it as about 20. Can someone (Larry?) explain the difference? I understand that there are many different ways to measure P/E, but sin...